NCERT MCQ ON INTRODUCTION TO ACCOUNTING:
Q1.Which of the following is not a business transaction?
(a) Bought furniture of Rs. 10,000 for business
(b) Paid for salaries of employees Rs. 5,000
(c) Paid sons fees from her personal bank account Rs. 20,000
(d) Paid sons fees from the business Rs. 2,000
Answer: (c) Paid sons fees from her personal bank account Rs. 20,000
Q2.Deepti wants to buy a building for her business today. Which of the following is the relevant data for his decision?
(a) Similar business acquired the required building in 2000 for Rs. 10,00,000
(b) Building cost details of 2003
(c) Building cost details of 1998
(d) Similar building cost in August, 2005 Rs. 25,00,000Answer
Answer: (a) Similar business acquired the required building in 2000 for Rs. 10,00,000
Q3.Which is the last step of accounting as a process of information?
(a) Recording of data in the books of accounts
(b) Preparation of summaries in the form of financial statements
(c) Communication of information
(d) Analysis and interpretation of informationAnswer
Answer: (c) Communication of information
Q4.Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?
(a) Understandability
(b) Relevance
(c) Comparability
(d) ReliabilityAnswer
Answer: (a) Understandability
Q5.Use of common unit of measurement and common format of reporting promotes
(a) Comparability
(b) Understandability
(c) Relevance
(d) ReliabilityAnswer
Answer: (a) Comparability
Complete the following sentences with appropriate words
Q1.Information in financial reports’is based on ……………. transactions.
Answer: economic
Q2.Internal users are the ……………… of the business entity.
Answer: management/employees
Q3.A ………………. would most likely use an entities financial report to determine whether or not the business entity is eligible for a loan.
Answer: creditor
Q4.The Internet has assisted in decreasing the ………………… in issuing financial reports to users.Answer
Answer: time-gap
Q5.………………….. users are groups outside the business entity, who uses the information to make decisions about the business entity.Answer
Answer: external
Q6.Information is said to be relevant if it is ……………….Answer
Answer: free from bias
Q7.he process of accounting starts with …………….. and ends with ……………….Answer
Answer: identifying the transactions, communicating information
Q8.Accounting measures the business transactions in terms of ……………….. units.
Answer: monetary
Q9.Identified and measured economic events should be recording in ……………….. order.
Answer: chronological
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